Worlds stocks rise on Alcoa

World stock markets rose Wednesday after the fourth-quarter earnings season got off to a positive start in the US with aluminum giant Alcoa forecasting higher demand for 2013.

Demand for aluminum has been hurt by the weak global economy, but Alcoa predicted a 7 percent increase in demand this year, slightly better than the 6 percent increase in 2012. Because Alcoa makes aluminum for so many key industries, investors study its results for clues about the health and direction of the overall economy.

“Regional markets are mostly firmer after the Alcoa result set the tone early in Asia,” said Stan Shamu of IG Markets in Melbourne in a market commentary. “Alcoa's results are generally considered a bellwether for the global economy and the fact that the aluminum giant forecasts higher demand in 2013 appeased investors.”

Major indexes surged last week after US lawmakers passed a bill to avoid a combination of government spending cuts and tax increases that have come to be known as the fiscal cliff. The deal, however, remains incomplete, and trading has been cautious since then. Politicians will face another deadline in two months to agree on more spending cuts.

Benchmark crude for February delivery was down 16 cents to $92.98 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 4 cents to close at $93.15 per barrel on the Nymex on Tuesday.

In currencies, the euro rose slightly to $1.3085 from $1.3084

Tuesday in New York. The dollar rose to 87.62 yen from 87.19 yen. - Sapa-AP